Delegates seek state of emergency in power sector

Delegates to the National Conference yesterday urged the Federal Government to declare a state of emergency in the Power sector.

But they baulked at the idea that generators be outlawed.

The delegates agreed that the Power sector requires an urgent government’s attention, to enhance the nation’s technological and economic growth.

They were unanimous that power and energy are strategic, adding that the Federal Government should not leave it in the hands of the private sector alone but participate actively.

State and local governments were also recommended to be constitutionally empowered to participate in the Power sector.

But the delegates rejected the review of the privatisation contracts between the Federal Government and the generating companies (gencos) and the distribution companies (discos).

The conference’s decision followed the adoption of the amendments to the recommendations of the Committee on Energy yesterday. The privatisation contracts were said to be on the brink of collapse.

The committee recommended that there is need for a reappraisal of the contract, as originally formulated.

But the delegates rejected the recommendation.

They also rejected the recommendation that a committee should review the National Electric Power Policy to make it possible for the nation to join the top 20 global economies.

The delegates adopted the need for the Petroleum Act of 1969 to be reviewed in the interest of justice and equity.

They also adopted the recommendation calling for an immediate solution to the large cash deficit threatening the Power sector.

The government was urged to implement the National Gas Master Plan. It was also advised to improve gas supply and transmission to ramp up power delivered to the system to solve the cash shortfall in the sector.

The government was also encouraged to ban the flaring of associated gas as well as sanction oil companies without facilities to stop flaring to serve as a deterrent.

It was also recommend that the ministerial power to grant exemption for gas flaring be removed.

Besides, it was recommended that new associated gases be reserved for the local market and consumption with necessary legal frame work to drive it.

The government was encouraged to harness tidal and energy sources, besides exploring the nuclear energy alternative for the development of the sector.

But the industrialisation of the Niger Delta, on the basis of the availability of raw materials, created tension as the delegates argued along regional lines.

The additional recommendation reads: “That a Niger Delta energy corridor be established to facilitate rapid industrialisation of Nigeria.”

Some delegates noted that such would allow only the Niger Delta region to be industrialised at the expense of the other parts of the country.

But others argued that industrialising the region, as long as it is for the benefit of the entire country, would amount to industrialising the country as well.

The motion was unanimously accepted after some Northern delegates argued that siting such industries in the Niger Delta would benefit the country the more.